The mortgage industry has a variety of challenges. First, mortgage companies are actively involved in retaining and recapturing borrowers in their loan servicing portfolios. In general, the strategies that mortgage companies develop and implement are built upon analytics of historic borrower and portfolio behavior. Nevertheless, mortgage companies have not had easy access to their own loan/borrower recapture metrics and have had limited access to mortgage industry portfolio data in order to benchmark recapture metrics.
Second, mortgage companies also require frequent and ongoing analysis of the major risks of their business. Two of these risks are borrower prepayment and default risk. The risk analysis that is done is typically an iterative process of question→analysis→review→action→question, etc. There are innumerous stratifications of information that are important to the understanding of risk and the operation and strategic direction of a mortgage company. The possible combinations thereof make the analysis unwieldy.
Third, existing mortgage data and query tools present only current-period or limited historic perspectives of a company's portfolio behavior or the industry portfolio behavior. While this is significant, and sometimes the only information available, more detailed retrospective and prospective insights are critical to successful strategic decision-making and planning. Prepayment risk and default risk are the primary risks of a mortgage company and effective management of those risks is an essential component of success.
Fourth, it is important to have information available quickly for users with varying technical expertise. Other mortgage data providers deliver data on a monthly basis via a compact disc (CD) or other media. When data is provided via a CD or other media, it takes time to create the CD, mail it to the mortgage company, who then must load the data to a workstation and attach it to an appropriate access tool. Data recipients must store the historical data and obtain some level of application knowledge for a user to easily access the information.
Fifth, it is important that user response time is very quick. Sixth, it is important that when comparing the performance of one portfolio to another or to Mortgage Industry Portfolio Data that a common and consistent method is used to arrive at the statistical data. Contributor‘s’ data can contain different values to represent the same data. For example, a code of “1” in one portfolio could mean a conventional loan but a “1” could mean an FHA (Federal Housing Administration) loan in another portfolio.
Thus, there is a need for a system and method for overcoming these and other challenges to the mortgage industry. Further, there is a need for a system and method of reporting and analyzing mortgage information in new ways. Even further, there is a need to provide mortgage companies with improved tools to enhance their business.